COMMENTARY

Like it or not, the lingering impact of the credit crunch correction is far from over. So while Wall Street is rejoicing in the recent Fed rate cut, Main Street USA still feels the pain of frozen credit markets and a much tighter lending environment.

So far, The Fed's 50-basis point rate cut on September 18 has failed to lower mortgage rates and boost demand. Average 30-year fixed rate mortgage rates ended last week at 6.42 percent, compared with an average 6.3 percent the prior week, according to Bloomberg.

Now, in the wake of the housing bust, American homeowners face a deepening bear market in residential real estate. And as more adjustable rate loans reset higher in coming months, that will put even more downward pressure on home prices - with no bottom in sight just yet.

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